Utilizing Data for Ecommerce Business Insights and Decision Making

Ecommerce businesses that thrive are those that make informed decisions based on solid data. In an era where market conditions can change rapidly, relying on intuition alone is no longer enough. Companies that effectively harness data are able to uncover critical market trends, understand customer behavior, and develop strategies that lead to sustainable growth.

Data-driven decision-making empowers businesses to go beyond guesswork, providing a clear picture of what’s working and what needs adjustment. Leaders like Cherene Aubert, who have successfully leveraged data in their roles at companies like Bobbie and ILIA Beauty, demonstrate how powerful insights can be when applied strategically. This blog, based on Episode 57 of The Operators Podcast, explores how ecommerce businesses can use data to gain deeper insights and make more informed decisions that drive success.

Understanding the Role of Data in Ecommerce Business Growth

Cherene Aubert’s career offers a vivid example of how data can be the cornerstone of ecommerce business growth. During her tenure at Bobbie, she led the charge in building a robust data infrastructure that went beyond simply collecting information. This infrastructure was designed to make sure that data was not only accessible but also actionable across all departments, enabling the entire organization to make informed decisions. The emphasis was on creating a data ecosystem that could support every facet of the business, from marketing to operations.

One of the most significant aspects of Cherene’s work was her emphasis on conducting comprehensive ecommerce market and brand growth studies. These studies provided valuable acumen into the company’s market position and helped identify what customers genuinely valued. By understanding these key factors, Bobbie was able to further tailor its ecommerce digital marketing strategies in a more effective manner, ensuring that the company was not just growing, but doing so in a way that resonated with its target audience. The ability to gather and interpret this data allowed Bobbie to stay ahead of market trends and make strategic decisions that propelled its rapid expansion.

Moreover, Cherene’s approach highlights the importance of having a dedicated data and insights team. This team was instrumental in translating raw data into meaningful nuggets of wisdom that could drive business decisions. By integrating data into the core of the company’s ecommerce marketing strategy, Bobbie was able to achieve a level of growth that might not have been possible through traditional decision-making processes alone. The success of this approach at Bobbie serves as a powerful reminder that data is not just a tool for measuring performance, but a critical asset for driving long-term growth and innovation.

Balancing Performance and Brand

A common challenge in many organizations is finding the right balance between performance-driven metrics and brand-building efforts. On one hand, performance metrics, such as conversion rates and ROI, offer immediate feedback and tangible results. They are crucial for justifying marketing spend and driving short-term gains. On the other hand, brand-building initiatives often take longer to yield results but are essential for creating lasting customer loyalty and differentiating the brand in a crowded ecommerce marketplace. Understanding how to build a strong brand identity is key to this balance, as a well-defined brand identity can serve as the foundation for both short-term performance and long-term success.

At Bobbie, Cherene initially started her role with a strong concentration on performance metrics, driven by her background in performance marketing and agency work. She was accustomed to relying heavily on data to measure success, often prioritizing numbers above all else. However, as she delved deeper into the brand’s operations, she encountered a culture that prioritized customer experience and brand loyalty over immediate performance gains. This was a substantial shift for Cherene, who had to reconcile her data-driven mindset with the company’s more holistic approach to brand building. Over time, she realized that while performance metrics are important, they should not overshadow the need to cultivate a strong, customer-centric brand.

This shift in Cherene’s perspective became particularly evident as she saw the impact of Bobbie’s brand-building efforts on customer acquisition and retention. The company’s commitment to understanding and serving its customers fostered a level of loyalty that translated into organic growth. Bobbie’s focus on delivering exceptional customer experiences—such as their strategy of personally delivering formula to parents in need—created a powerful word-of-mouth referral engine that drove new customer acquisition without the need for heavy marketing spend. This experience taught Cherene that brand-building is not just about long-term gains; it can also majorly enhance performance metrics by reducing customer acquisition costs and increasing lifetime value. The lesson is clear: ecommerce businesses seeking success must invest in their brand to support and amplify their performance efforts, which will create a virtuous cycle where brand loyalty drives performance, and strong performance reinforces the brand.

Leveraging Data for Strategic Decision-Making

Data is not just a tool for tracking performance; it is a key asset for making informed, strategic marketing decisions that can shape the future of an ecommerce business. Cherene Aubert’s approach to data at Bobbie exemplifies how businesses can leverage data to drive strategic growth. One of the key insights she shares on The Operators Podcast is the importance of distinguishing between organic and paid customer acquisition. At Bobbie, Cherene and her team closely monitored the company’s ability to attract customers without relying on paid advertising. By doing so, they could assess the brand’s intrinsic value and the effectiveness of their organic growth strategies. The ability to turn off paid campaigns while still seeing customer growth was a powerful indicator that their brand had achieved a higher level of market strength.

This focus on organic acquisition wasn’t just about saving money on advertising; it was a diplomatic decision aimed at building a sustainable growth engine. Cherene recognized that an ecommerce brand that can generate a lot of organic interest is much more resilient and less vulnerable to the fluctuations of paid media costs. To maintain and grow this organic engine, Bobbie invested in understanding what truly resonated with their customers. This involved not only tracking metrics like organic acquisition cost and customer lifetime value, but also conducting deeper analyses of customer behavior and preferences. Proper use of ecommerce marketing tools was critical in gathering and analyzing this data, ensuring that Bobbie could make strategic decisions based on real-time insights.

Another essential element of Cherene’s data strategy was the use of brand trackers and ecommerce market studies. These tools allowed Bobbie to continuously measure and understand its position in the market relative to competitors. By regularly surveying market consumers—both those who were aware of the brand and those who were not—Bobbie could gauge brand awareness, consideration, and conversion rates over time. This data provided a clear picture of where the brand stood and where there were opportunities for growth. For instance, if a market study revealed that awareness was high, but conversion was low, the team could focus on refining their messaging or improving the customer journey to boost conversions. This smart use of data ensured that every decision was grounded in a thorough understanding of the ecommerce market and customer landscape, enabling Bobbie to stay ahead of competitors and adapt quickly to changes in the digital market.

Challenges and Solutions in Data-Driven Business Strategies

While leveraging data for business insights and decision-making offers many advantages, it also presents several challenges that companies must navigate in order to be successful. One of the most common challenges is verifying data quality. Poor data quality can lead to incorrect insights, which in turn can result in misguided digital marketing strategies and wasted resources. For instance, if data is incomplete, outdated, or inaccurate, any decisions based on that data are likely to be flawed. Cherene Aubert’s experience underscores the importance of establishing rigorous data governance practices. At both Bobbie and ILIA Beauty, she emphasized the need for clean, accurate, and up-to-date data as the foundation for any analysis. This included implementing data validation processes, regular audits, and employing tools that could automatically flag inconsistencies. By prioritizing data quality, ecommerce companies can make sure that the information they derive from it is reliable and actionable.

Another notable challenge when it comes to data-driven business strategies is the integration of disparate data systems. In many organizations, data is siloed across various departments, with each team using its own tools and platforms to collect and analyze information. This fragmentation makes it difficult to gain a holistic view of the business, which is essential for strategic decision-making. Cherene tackled this issue by advocating for a unified data infrastructure that brought together data from all parts of the organization. This approach not only facilitated more comprehensive analyses but also enhanced collaboration between teams. For example, by integrating marketing, sales, and customer service data, Bobbie was able to identify correlations between customer inquiries, marketing campaigns, and sales performance, leading to more worthwhile cross-functional strategies. The key is to break down these silos and create a seamless flow of data across the entire organization.

Aligning data insights with business goals is another challenge that many companies face. Even with high-quality, well-integrated data, the information generated must be relevant and aligned with the company’s strategic objectives. Without this alignment, there’s a risk that data efforts will focus on metrics that do not contribute meaningfully to the business’s success. Cherene’s solution to this challenge involved close collaboration between the data and insights team and other departments, ensuring that everyone was on the same page regarding the company’s goals. At Bobbie, this meant that the data team didn’t just deliver reports; they worked hand-in-hand with marketing, sales, and product development teams to interpret the data in the context of broader business objectives. By doing so, they certified that every insight was actionable and directly tied to the company’s strategic priorities. This collaboration is essential for translating ecommerce data into decisions that drive real business value.

Turning Data into a Competitive Advantage for Your Ecommerce Business

In an increasingly competitive ecommerce market, the ability to leverage data efficiently can be the difference between success and stagnation. As Cherene Aubert’s experiences at Bobby and ILIA Beauty illustrate, data is not just about tracking past performance—it’s a powerful tool for shaping the future of a business. By focusing on data quality, integrating systems, and aligning insights with strategic goals, companies can transform raw information into actionable ecommerce marketing strategies that drive growth and innovation.

However, the true power of data lies in its ability to guide informed decision-making at every level of the organization. Whether it’s understanding ecommerce market trends, enhancing customer loyalty, or optimizing operations, data-driven strategies provide the clarity and direction needed to navigate today’s complex marketing landscape. As you consider your own business practices, ask yourself: Are you fully harnessing the potential of your data? Start by conducting a market study or implementing a brand tracker to gain a deeper understanding. By taking these steps, you can begin turning your data into a competitive advantage that propels your ecommerce business forward.

To learn more about business growth and investing in ecommerce, check out our ecommerce podcast, The Operators Podcast, on Spotify, YouTube, or Apple Podcasts.

Resources

1. E057: Operators in Session with Cherene Aubert – The Operators Podcast

2. Ecommerce Analytics: How To Analyze Data for Your Business (2024) – Shopify

3. A Guide to Ecommerce Analytics to Drive Business Growth – Semrush